-g-
projects, consolidating all ofthe moving parts into an organized framework, and increasing all
programming. The discussion of her presentation engaged everyone on the Academic Affairs
Committee.
J. Finance Committee Report
Mr. Stuckert, chair ofthe Finance Committee, reported that the committee met that
moming and vetted FCRs l through 8. FCR l was a consent item, discussed and approved
earlier, a gift from the estate of Gary M. Browning, MD.
K. Acceptance of Interim Financial Report for the University of Kentucky for the
Three Months Ended September 30 2010 (FCR 2)
In FCR 2 UK’s current fund revenues was shown to represent 27 percent ofthe approved
budget while operating expenses to that date are 25 percent ofthe approved budget. Mr. Stuckert
moved approval of FCR 2. Mr. Miles seconded his motion, and there was no opposition to its
adoption. (See FCR 2 at the end of the Minutes.)
L. 20l0-ll Budget Revisions (FCR 3)
Mr. Stuckert said that FCR 3 represents 20l0-ll budget revisions. He summarized the
changes in the three categories of the budget: General Fund — change of $30,600,000; Auxiliary
Fund — a change of $75,000; and Restricted Funds — a net change of $536,400, including a
$505,000 gift from the estate of Peggy H. Gwillim. Mr. Stuckert moved approval of FCR 3. Ms.
Curris seconded his motion, and it carried without dissent. (See FCR 3 at the end ofthe
Minutes.)
M. Approval of Investment in Coldstream Laboratories Inc. (FCR 4)
Mr. Stuckert summarized the Finance Committee’s extensive review of FCR 4, Approval
of Investment in Coldstream Laboratories, Inc., known as CLI, during their morning meeting.
The resolution asks for authorization ofthe president to approve the transfer of up to $5.5 million
from the University of Kentucky Research Foundation to be used as investment in CLI to fund
operations and to develop new product lines, and as working capital. Officials from CLI
participated in the moming meeting, and a thorough examination of the request was conducted,
with the result that the committee approved the motion and passed it to the full board. Mr.
Stuckert moved approval of FCR 4. Mr. Shoop seconded the motion.
Dr. Peek expressed some reservations about the lack of infonnation available to the board
members who are not on the Finance Committee. He received Mr. Stuckert’s reassurance that at
the morning’s meeting there was a thorough investigation of the request as well as ofthe
operation of CLI. In the recent past, CLI has obtained new management talent and made the
addition of knowledgeable individuals to its board of directors in order to show profitability in its
operations. Mr. Stuckert thought that perhaps the issue was whether investing in corporations
such as this is an appropriate function ofthe university. He suggested that UK has leamed much
during this venture. Once such an investment is made, the supporting institution needs to affinn